The Holden Finance Committee has begun making final adjustments to the FY2027 budget as it prepares to determine the size of a potential override. The first step was a review of the town’s current financial position.

Holden entered this year with $4.5 million in its primary savings account. The proposed FY2027 budget relies on $2.1 million of those reserves to avoid even deeper cuts - cuts that already include reduced hours at the library and Senior Center, the freezing of seven public safety and DPW positions, and sharply limited equipment purchases. This level of reliance on savings is not sustainable. Next year, without new revenue, the town will face severe additional reductions to municipal services.

For the past four years, the Finance Committee has warned that Holden was on an unsustainable financial path. Savings could bridge the gap for a time, but eventually those reserves would run out. The Committee intentionally delayed requesting an override while savings were available, but the point has now been reached where it is unavoidable.

Holden is far from alone. Eighty-five percent of Massachusetts municipalities are underfunded by the state’s education formulas, and more than 130 communities have attempted over 270 overrides in the past five years. A record number are planning override votes for 2027. Holden is one of the few communities that has not passed an override in more than three decades; the last one was approved in 1992.

Why an Override 

Is Needed

The core issue is that revenues are growing far more slowly than expenses. While Proposition 2½ limits the town’s tax levy increase to 2.5 percent per year, major cost drivers are rising much faster:

• Inflation has exceeded 20 percent since 2020.

• Insurance costs are up 14.3 percent in FY27.

• Retirement and pension costs are up 11 percent in FY27.

• Declining student enrollment has resulted in minimal Chapter 70 increases for Wachusett Regional Schools over the past three years.

• Changes to the state education formula since 2019 continue shifting more education costs onto towns.

• WRSD’s assessment to Holden is increasing 3.9 percent, following two years of increases above 5 percent.

• WRSD has been adding positions to increase the quality of education provided.

• These pressures simply outpace the revenue allowed under Proposition 2½.

These trends have a direct impact on the Wachusett Regional School District. Without an override, Holden will not be able to continue funding the district’s annual budget requests, which have been increasing faster than the town’s revenues under Proposition 2½.

Cuts Required to Balance the Budget Without an Override

To remain within Proposition 2½ limits, the proposed FY2027 budget includes the following reductions:

• Reduce Senior Center hours from 40 to 20.

• Freeze hiring of one parttime Outreach position at the Senior Center.

• Reduce Library hours from 54 to 32.

•Freeze hiring of three Police Officers.

• Freeze hiring of one Fire/EMT position.

• Decline a $416,000 SAFER Grant that would have funded training and two Fire/EMT positions.

• Freeze hiring of three DPW positions.

• Eliminate one position in the Treasurer/Collector’s Office.

• Significantly reduce capital investments, including postponing the purchase of a needed fire truck and underfunding the ambulance replacement plan.

Public Information Sessions

The Finance Committee will hold two informal public information sessions on April 22 at 1:00 pm and 6:30 pm at the Holden Senior Center. All residents are welcome to attend and ask questions about the budget.

Upcoming Election

The Town Election will be held on May 11, and will include the override question, which requires a simple majority to pass.

Paul Challenger is chair of the Holden Finance Committee. W